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Technology Stocks : Westell WSTL
WSTL 6.440+1.7%Feb 2 3:55 PM EST

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To: bill c. who wrote (6170)9/5/1997 8:05:00 AM
From: Hiram Walker   of 21342
 
Bill, the real question if I am a RBOC exec,is how do I implement a plan that will last. If I install ADSL,then I will have to upgrade within 5 years to VDSL,due to the needs of people for bandwidth. Will I do this? I would if it was cheap enough that I could install the DSLAM's and DLC's incorporating ATM. Then the migration path to VDSL would not be that costly or that difficult. Also there is the provisioning for power and network management that needs to be addressed. Now we have to think about losses of revenues from T-1,but that really isn't a concern if we can block the ISP's from gaining dry copper and alarm lines. It would keep the ISP's buying T-1,and T-3 from us,limit them to mainly 56 modem speed,allowing us to advance to 1.5,then they could eventually close down all the ISP's,including AOL.
Maybe if this is done right through the courts and litigation,it would be the end of all the ISP's,and the RBOC's would have all the fast access to the internet.
So going forward,what would be a RBOC game plan?
To me,it would be litigation first to block access from as many people as possible,while sill gaining revenue from them for their upgrades to xDSL. Then I would implement some sort of competitive landscape where all the ADSL vendors(the main 10-15),would be be competing solely on price. To start a bidding war on a commidity market,that would be easy to install and provision,mainly CAP RADSL. If I could get the price down enough,say to what I now pay,then I would go full force towards ADSL. But to do this they must get the copper up to snuff,and take out the remaining load coils.
Then I could then implement the real strategy of deploying VDSL slowly over the next 5-10 years.
Hiram
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